Page 36 - Annual Report 2016

QUEENSLAND TOUCH ASSOCIATION Inc.
ABN 32 751 852 440

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2016
NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Cont'd)

Event Income
Event income is recognised when the events are performed. If fees are received in advance for events, it will be recorded as
a deferred revenue amount net of the expenses and revenue in the balance sheet.

All revenue is stated net of the amount of goods and services tax.

(h) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not
recoverable from the Australian Taxation Office (ATO). Receivables and payables are stated inclusive of the amount of GST
receivable or payable. The net amount of GST recoverable from, or payable to, the ATO is included with other receivables or
payables in the assets and liabilities statement.
(I) Trade and Other Payables
Trade and other payables represent the liability outstanding at the end of the reporting period for goods and services
received by the association during the reporting period, which remain unpaid. The balance is recognised as a current liability
with the amounts normally paid within 30 days of recognition of the liability.

(j) Income Tax
The association is exempt from income tax under the provisions of Section 50-5 of the Income Tax Assessment Act 1997.

(k) Customer Intangibles
Customer intangibles acquired as part of a business combination are recognised separately from goodwill. The customer
intangibles are carried at their fair value at the date of acquisition less accumulated amortisation and impairment losses.
Amortisation is calculated based on the timing of projected cash flows over their estimated useful lives, which currently are
estimated at five years.

(l) Goodwill
Goodwill is not amortised but it is tested for impairment annually, or more frequently if events or changes in circumstances
indicate that it might be impaired, and is carried at cost less accumulated impairment losses.

Goodwill is allocated to cash-generating units for the purpose of impairment testing. The allocation is made to those cash-
generating units or groups of cash-generating units that are expected to benefit from the business combination in which the
goodwill arose. The units or groups of units are identified at the lowest level at which goodwill is monitored for internal
management purposes.

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